Brown & Company PLC to raise Rs 2B via Listed Debenture Issue

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Brown and Company PLC has announced a debenture issue to raise Rs 2 billion, with an option to issue up to a further Rs 3 billion. Each listed rated senior guaranteed redeemable debenture is offered at Rs 100. Moreover, LOLC Holdings PLC has provided a Corporate Guarantee to the issue. The Colombo Stock Exchange (CSE) has approved the listing of the debentures. The issue is open from 30 March. NDB Investment Bank is acting as managers and placement agents to the issue. The funds raised through the debentures will be utilised to settle the short-term loans of the company.

The Debenture issue carries two types of Debentures; the Type A Debentures carry a coupon interest rate of 15.50 per cent per annum payable annually (AER 15.50 per cent) whereas the Type B Debentures carry a coupon interest rate of 15.42 per cent per annum payable quarterly (AER 16.33 per cent).

The total assets of Brown and Company PLC Group amounted to Rs 259 billion and equity attributable to equity holders amounted to Rs 46 billion as at 31 December 2021.

The minimum investment amount for the debenture issue is Rs 10,000.